The cost of ingredients continues its upward trajectory, with two major suppliers hiking prices in the past month.Beneo-Orafti, the Belgium-based supplier of chicory-derived prebiotics, said it would increase prices by 25% on its range of Orafti products from 1 November.
"We have strived to avoid this price increase and have made many improvements within the business to make sure it is running as efficiently as possible," said Dominique Speleers, managing director. "However, due to the continued and unprecedented increases we have experienced in energy, raw materials and processing costs, a price increase is inevitable and necessary to cover costs and maintain profitability.
"We understand this price increase means extra pressure for our partners and customers. We do know, however, that the consumer recognises the value and benefits of healthy nutritious foods and is willing and prepared to pay a price premium for such value-added products."
Meanwhile, Switzerland's DSM Nutritional Products said it was imposing double-digit increases on the price of two of its cartenoids and its customised mixes of vitamins and minerals.
The price of the company's beta-carotene and lycopene products and its Quali-Blends range would rise by at least 10% for all newly contracted business globally, said the company, as a result of "increases in raw material prices, energy and transportation costs".
Earlier this year DSM increased the price of its fat-soluble vitamins by a similar amount, citing cost pressures and higher demand as the reason for the move.